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Customer acquisition cost (CAC): How to calculate and improve it

Zendesk

Customer acquisition cost (CAC) was on the rise for many companies prior to COVID-19. But since the onset of COVID-19, brands have actually been acquiring new customers more cost-effectively. McKinsey & Company reports that the shift to digital sales led to 30 percent higher acquisition efficiency for businesses.

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How to Calculate the Cost of Customer Retention Versus Customer Acquisition

Totango

Comparing the cost of customer retention versus customer acquisition underscores why retaining clients is so important. Calculating the Cost of Customer Acquisition. To calculate your average CAC, total up all the marketing and sales costs that go into your acquisition efforts for a given period.

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2024 Expectations: The forefront of the next generation of customer success

Totango

We polled our Customer Advisory Board (CAB) at the end of last year to gauge which way they saw the pendulum shifting for CS in 2024. Most expect to see CS emerging as a growth engine. Human expertise, along with AI technology, transforms CS into a significant growth engine for their companies.

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Customer Relationships Are a Waste of Time! Is This True? What Do You Think?

Beyond Philosophy

How do you build a long-term relationship with customers? Tina works for an engineering company in Australia and recently joined the New Zealand office. Tina’s key focus is on Customer Experience and development, and she wants her team to change their transactional approach to customer strategy.

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Bought-in and paid for: how Atlassian bridge the gap from freemium to enterprise sales

Intercom, Inc.

Instead of a pushy, always-be-closing approach, everything’s on the customer’s terms, Kristen emphasizes. And from the seller’s side, there’s less investment needed in nurturing leads through a lengthy pipeline, so the customer acquisition cost is lower. Aligning sales, marketing, and product teams.

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Brand Integrity and Your Ideal Customer

ClearAction

The gap between what’s promised and what’s received, as seen by customers, is your brand integrity gap. CMOs set expectations for customer acquisition and CCOs assure expectations are delivered for customer retention. Minding the gap is the ultimate purpose of a CCO.

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The appliance of science: Mark Roberge’s formula for scaling

Intercom, Inc.

As an engineer by training, in pressure situations he tends to “lean to the quant.” In the world of SaaS, this is usually in the form of unit economics : a customer lifetime value (LTV) to customer acquisition cost (CAC) ratio of greater than three, and a payback period of 12 months or less. Next comes go-to-market fit.